Bond yields traded lower on Monday, as a higher-than-expected interest rate cut by the Reserve Bank of India (RBI) last week continues to cheer the market. Besides, the risk appetite of investors improved across the risky asset classes after weak US jobs data prompted expectations the US Federal Reserve might postpone an interest rate hike.
In the global market, U.S. Treasury debt prices rose on Friday with benchmark yields falling to their lowest in 5-1/2 weeks as a surprisingly weak U.S. jobs report for September reduced economists' expectations that the Federal Reserve will raise interest rates this year. Furthermore, crude prices edged up on Monday after Russia said it was prepared to meet other producers to discuss the situation in the global oil market, while a report showed a fifth weekly decline in the U.S. oil rig count.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 7.51% from its previous close of 7.56% on Thursday.
The benchmark five-year interest rates were trading 5 basis points lower at 7.60% from its previous close of 7.65% on Thursday.
The Reserve Bank of India has announced the auction of 91-days and 182-days Government of India Treasury Bills for notified amount of Rs 8,000 crore and Rs 6,000 crore respectively. The auction will be conducted on October 07, 2015 using 'Multiple Price Auction' method.